Case Law Details
Mumbai Postal Employees Co-operative Credit Society Ltd Vs ITO (Bombay High Court)
Bombay High Court held that failure on the part of assessee is a prerequisite for invoking jurisdiction for reopening of assessment. In absence of same, reopening of assessment is unsustainable and liable to be set aside.
Facts- A return of income was filed by the Petitioner for A.Y. 2014-15 declaring Nil income after claiming deduction u/s. 80P of the Act of Rs.13,31,80,877/-. Subsequently, the Petitioner’s case was selected for scrutiny and a notice u/s. 143(2) was issued. One of the issues flagged during scrutiny was the deduction claimed under Chapter VI-A of the Act by the Petitioner. A notice u/s. 142(1) of the Act was issued asking the Petitioner to inter alia explain with documentary evidence the claim of deduction under Chapter VI-A of the Act.
Post reply from the assessee, the order of assessment u/s. 143(3) of the Act came to be passed on 23rd November, 2016 whereby deduction u/s. 80P of the Act only in regard to the holiday home charges was disallowed to the extent of Rs.1,00,650/- and added back to the income of the assessee, under the head income from other sources and by necessary implication the claim of the Petitioner for deduction u/s. 80P of the Act with regard to interest income earned by the Petitioner on account of deposit of funds in the cooperative bank was therefore allowed.
A notice u/s. 148 of the Act came to be issued by the A.O. seeking to reopen the assessment proceedings for A.Y. 2014-15 on the ground that the income had escaped assessment for the said year, within the meaning of Section 147 of the Act.
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